How to sell your car for the highest price
There are a few different ways to sell your car in Singapore, namely :
- Selling your car to a dealer
- Selling your car via consignment
- Selling your car directly to a buyer by yourself
The best way to sell your car so you get the highest price is to sell it directly to a buyer. Why?
This is because when you sell to a dealer, they will not pay you market price for it.
Just like how you sell an item to a shop, they will take it in at a lower price because they have to factor in their markup and costs before they resell it.
Suppose you have a 2017 Kia Cerato that has a paper value of $37,300, and it’s selling online for about $60 – $65k. In your mind, you are targeting to sell it for $63k.
When you go to a dealer, will they pay you $63k? Most likely not, because :
- Dealer is taking a gamble on how fast the car can sell (every day that the car sits on the lot, it costs the dealer money in the form of parking, loan repayments, depreciation* etc.)
- Repairs and maintenance (e.g road tax, wear and tear items)
- Overheads (e.g shop rentals, commissions)
- Even if the dealer sells the car, the buyer is still able to get the dealer to compensate him/her should there be issues with the car due to lemon law. Hence, the dealer has this added risk.
*If a dealer takes in your car at $50k now, and ends up selling it only 3 months later, the dealer may have to lower his selling price to account for the 3 months depreciation, which can be in the thousands of dollars depending on the make and model.
So hypothetically, the dealer may only take your car in at 50k. This is because they have to factor in the above items.
Therefore, don’t expect to get the best price when trading in to a dealer. Afterall, they are a business and they have to make money to survive 🙂
However, selling to a dealer has one big advantage :
- It is fast. If you are looking to get rid of your car quickly, this is probably the best approach because dealers may be able to offer you cash on the spot for your car.
But if you’re looking for the best price (like most customers are) and don’t mind waiting for a while until your car is sold, then selling your car directly to a buyer is the best option.
You can do this in 2 ways :
- Selling your car by yourself
- Selling your car via consignment
Most people are not too familiar with the process of selling a car since it’s not something they do often. Not to mention the industry practices and paperwork involved.
Just a guess based on my gut feeling – car owners tend to hold on to their cars for 4 or more years. Therefore this is something most people do not do very often.
Furthermore, there are bound to be changes in the car selling process within that time frame.
If you are comfortable selling your car on your own, by all means – go ahead !
This is the best way to ensure you are getting the highest price for your car since you are handling everything in the car selling process on your own.
Alternatively, if you want the best price for your car without dealing with all the enquiries, paperwork and viewings yourself, then you can sell your car via consignment, i.e selling your car through a dealer.
Selling via consignment is probably the easiest way for you to get the highest price for your car, and for the potential buyer to actually buy your car.
Wait – what’s consignment?
Selling your car via consignment means that we will market your car, advise you on the suitable pricing for it, and handle enquiries and viewings for you while you maintain ownership of your car.
This means you can still drive your car (as if nothing has changed), but when there is viewing for your car, we will contact you to arrange for a time and place to let the potential buyer view your car.
We can also drive your car to the viewing location on your behalf, free of charge.
*When your car is under consignment with us, it is automatically included in our company’s motor insurance when one of our staff gets behind the wheel, so you can be well assured 🙂
This is because the dealer will handle the viewings, marketing of your car, advising you on a fair pricing for your car, and most importantly :
Dealing with all the paperwork required for both parties – which commonly include the following :
- Settling the outstanding loan for your car
- Settling the outstanding loan for the buyer’s existing car
- Trading in or selling the buyer’s existing car
- Loan application to different banks/finance companies
- Getting competitive car insurance quotations from different insurers
- Sending the car for STA evaluation or workshop checks (pre-purchase inspection)
Dealers will typically charge a 1% fee of the car’s selling price for the above services, called the consignment fee.
So if your car is sold at $50,000 – then the consignment fee will be just $500.
At the end of the day, you should sell your car in a way that is most comfortable for you.
If you want to sell your fast (and not get the best price), then you should sell it to a dealer.
If you want to get the best price (and don’t mind waiting for your car to be sold), then you should sell it via consignment.
Want to sell your car? Get in touch with us!